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Australian Report Confirms Post-Carbon Tax Savings

by Robert Lee,, London

28 July 2015

Australian households are saving an average of AUD550 (USD403) a year following the repeal of the carbon tax, the Australian Competition and Consumer Commission (ACCC) has confirmed.

The ACCC has now concluded its formal carbon tax repeal monitoring role and presented its final report to Small Business Minister Bruce Billson. ACCC Chairman Rod Sims said: "As a result of its monitoring activities, the ACCC is satisfied that all electricity and natural gas suppliers, and bulk synthetic greenhouse gas (SGG) importers have passed through to customers all cost savings attributable to the carbon tax repeal."

The ACCC said that, taking into account all the available information, it believes the Treasury's estimate of an average yearly household cost saving of AUD550 is reasonable.

It has calculated direct cost savings, ranging from AUD153 to AUD269, that have been passed through to customers by electricity and natural gas retailers. Depending on the SGG type, average SGG prices at the bulk import level have fallen from between AUD38/kg and AUD109/kg during the carbon tax period, to between AUD8/kg and AUD34/kg. At a wholesale level, average prices have decreased from between AUD47/kg and AUD182/kg to between AUD14/kg and AUD33/kg.

The ACCC has also seen cost savings across sectors including landfill, council rates and charges, food manufacturing, water charges, aviation fuel, and liquid petroleum gas. The ACCC expects that these cost savings will flow down the supply chain throughout the economy over time and be passed through to consumers as part of the normal market process.

Billson said: "This finding is what the Government expected and [is] part of our strategy to help build a stronger economy and bring down the cost of living for Australian families and businesses. It confirms that a tax on carbon is harmful for businesses and households."

TAGS: tax | business | government committee | aviation | Australia | food | manufacturing | carbon tax | revenue statistics | tax reform | retail

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